managing non-performing loans (npl) & debt recovery ... · k asset based k cash balance...

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https://bizenius.com/trainings/banking-finance/npl www.bizenius.com Managing Non-Performing Loans (NPL) & Debt Recovery Strategies and IFRS9 Course Highlights: Best Practices for Effective Management Non Performing Loans Strategic Approach to NPA Management Use practical debt recovery approaches Understand in-depth the real reasons why debtors cannot pay Develop and formulate effective debt collection policy framework for their organisation Client profiling. Better data means better risk-taking and client profiling. IFRS 9 accounting standard for NPL management

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Page 1: Managing Non-Performing Loans (NPL) & Debt Recovery ... · K Asset based K Cash balance approach K Trade credit insurance Module 3 : Restructuring & Rephasement of Loans K Prudential

https://bizenius.com/trainings/banking-finance/npl

www.bizenius.com

Managing Non-Performing Loans (NPL) & Debt Recovery Strategies and IFRS9

Course Highlights:

• BestPracticesforEffectiveManagementNonPerformingLoans

• StrategicApproachtoNPAManagement

• Usepracticaldebtrecoveryapproaches

• Understandin-depththerealreasonswhydebtorscannotpay

• Developandformulateeffectivedebtcollectionpolicyframeworkfortheirorganisation

• Clientprofiling.Betterdatameansbetterrisk-takingandclientprofiling.

• IFRS9accountingstandardforNPLmanagement

Page 2: Managing Non-Performing Loans (NPL) & Debt Recovery ... · K Asset based K Cash balance approach K Trade credit insurance Module 3 : Restructuring & Rephasement of Loans K Prudential

https://bizenius.com/trainings/banking-finance/npl T:+919902200556 E:[email protected]

Any bank is always faced with non-performing loan (NPL) risk due to its main function as a financial intermediary. Various efforts have been made by banks to avoid the NPL. However, due to various reasons in business environment or debtor’s management ability, any bank continues to experience NPL. This program is designed to improve credit officials’ competence in order to gain benefits, among other things, improvement of ability in diagnosing various causes of NPL, understanding on alternative restructuring schemes, selection of exact alternative scheme, and ability in monitoring the implementation of NPL restructuring, ability to improve debtor’s performance from NPL category to resume to be current as well as to support bank in achieving the target of NPL decrease.

The course provides participants the understanding of the art of NPA management. The masterclass provides participants with practical tools and methods required for effective implementation of bank’s NPA management policy. This is an instructor led course designed to provide a practical understanding of the new global framework for risk management. This workshops will engage participants in real-life cases that will assist them to develop the skills critical to successful collections and recoveries and manage nonperforming loans.

Key Learning Objectives:

K Define non-performing loans and the indicators of non-performing loans.

K A&M Six Step to NPL Management Methodology

K Work-out strategies: Consensual or legal work-out strategies as detailed in routes to recovery

K Immediate sale: Suitable for unsecured loans or loans with limited potential for an upside through internal work-out strategies

K Hybrid strategy: Work-out of loans with enhancement potential for a specified time followed by a sale

K Structured solution: Such as an SPV. Applicable for complex loans or portfolio segments where new money is needed or bank’s involvement plays a key role in improving recoveries

K Redesign the operating model for corporate loans, developing a workflow management tool to facilitate collaboration between credit and commercial units.

K Optimize legal services, adopting a value-based compensation model depending on the value effectively recovered. Legal expenses can be reduced by 20-30 percent, along with benefits on the overall recovery time.

K Launch a collateral recovery data quality program, leveraging existing information on collateral agreements and defining dedicated crash programs to improve the collateral data set to better address recovery strategies.

K Client profiling. Better data means better risk-taking and client profiling. Combining information on financial assets and their financial and consumption behaviors can help to balance a high level of industrialization within a pre-defined set of actions for low-value clients and a bespoke approach for high-value ones, reducing costs and time to recovery.

K Collateral management using advanced analytics to combine information on property value, collateral, borrowers, guarantors (i.e. valuation, auction information) to monitor unexpected depreciation. Better collateral management can reduce loan losses on collateral positions by 5-10 percent.

K Early warning and forward-looking models that leverage predictive analytics to improve credit portfolio quality can reduce portfolio deterioration by 30-40 percent.

Course OutlineAbout BIZENIUS

BIZENIUS offer a wide range of professional training courses designed to give you the skills and strategic edge your industry de-mands. Our course content is always fresh, never generic and continually updated to ensure our curriculum reflects the diverse landscape of innovation across Energy & Re-sources, Banking, Telecom, Finance & Invest-ment, Oil and Gas, Mining, Construction and more.

Whether you want to learn the fundamentals or expand your knowledge with advanced training, we’ve got a programme for you. Our technical and non technical training courses within the industry offer a variety of levels to help you be productive in your work. We offer Introductory and expert level courses as well as customer specific on site training are also offered upon request.

Course Requirements And Certificates

Delegates must meet two criteria to be eligible for BIZENIUS Certificate of Completion for a course:

1. Satisfactory attendance – delegates must attend all sessions of the course. Delegates who miss more than 6 hours of the course sessions will not be eligible for the certificate

2. Successful completion of the course exercises Delegates who meet the above criteria will receive BIZENIUS Certificate of Attendance.

Course Assessment

Your understanding of the course content will be assessed by completion of course exercises in the classroom and active participation.

Who Should Attend

This course is suitable senior executives within Banks, Regulators, Retail Companies, Merchants, Insurers, Business Intelligence Companies, Payment Platform Companies, other financial institutions and all other forward-looking companies in all sectors.

K C-Level Executives: CEO, CFO, CMO, CTO, CIO, COO

K Product Development Managers K Business Development

K Finance Managers K Sales Managers K Transaction K Monetory Policy K Marketing Managers K Regulator/ Regulatory Developer K Compliance Manager K Technology Developers K Innovation Heads K Technology Adoption K Business Strategy

Page 3: Managing Non-Performing Loans (NPL) & Debt Recovery ... · K Asset based K Cash balance approach K Trade credit insurance Module 3 : Restructuring & Rephasement of Loans K Prudential

Day 1

MODULE 1: INTRODUCTION

K Workshop scope and objectives K How CRM fits within the overall strategy K Appreciate the different perspectives of

CRM and how it is a ‘holistic’ approach K What is the difference between

‘customer-centricity’ and ‘product-centricity’

K The difference between ‘customer sets’, ‘segments’ and the CVP

K The key drivers of segment profitability

MODULE 2: SEGMENTS, CUSTOMERS AND COMPETITORS

K Appreciate the different approaches we can use to segment the market

K Understand a common approach to segment analysis

K Develop and practice using the tools required for effective analysis

K The role of market research and customer understanding

K The use of ‘customer profiles’ for smaller businesses

MODULE 3: CRM TOOLS AND TECHNIQUES

K Understand the importance of customer retention to underpinning profitability

K Recognise the importance of good processes in CRM and customer retention

K Understand how a credit rating system underpins a robust credit process

K The principles of economic profitability in comparing customers of different risk profiles

MODULE 4: ORGANISING AND MANAGING THE RM TEAM

K Explore the different organizational models embed customer orientation

K Understand some key principles of distribution channel management

K Explore different reward and incentivisation mechanisms for RM staff

K Understand the importance of the sales cycle

K The principles of sales and service automation

K Case Study and Group Discussion

MODULE 5: ROUTES TO RECOVERY

K Restructuring the loan with new terms or collateral; or restructuring the business with new lending or equity

K Cash settlement via cash generated by the underlying business (usually performing or subperforming loans)

K Cash settlement via the sale of underlying collateral with borrower’s consent

K Cash settlement via the sale of other assets or other cash sources of the borrower

K Repossession of the real estate or assets securing the loan by borrower’s consent

K Out of court restructurings (INSOL principles)

K Enforcement of underlying collateral if the borrower is not cooperative

K Recovery through in-court restructuring schemes

K Recovery through insolvency, liquidation, administration process

Day 2

Module 1: Burning issues in debt recovery

K Uncontactable/Missing customers K Contactable but can’t afford to pay K Avoiding payment with a thousand

reasons K Interference from top management on

collection section K Customer delays payment on purpose K Incomplete documents K Financial /Cash flow problems K Case Study and Group Discussion

Module 2: Minimise provision for bad debt provision

K Asset based K Cash balance approach K Trade credit insurance

Module 3 : Restructuring & Rephasement of Loans

K Prudential guidelines on restructuring of advances

K Eligibility criteria for restructuring of advances

K IRAC norms for restructured advances K Provisioning norms for restructured

advances K Risk weights for restructured advances K Disclosure norms K CDR Scheme K SME Debt Restructuring mechanism

MODULE 4: Use of policies to control delinquency

K Examination of lending policies K Tools for monitoring portfolio K Reports that manage the non-

performing portfolio K Measurement of success K Tracking the portfolio

MODULE 5: PRODUCT MANAGEMENT AND CROSS SALES

K Explore the potential product mix for corporate customers

K The importance of cross sales K Understand the principle of ‘Customer

Solutions’ and product bundling K Appreciate the potential of

collaborative CRM to boost leads, products, and sales

K The potential of non-financial services K Case Study and Group Discussion

MODULE 6: NPL impairment in line with IFRS 9

K Overview of IFRS 9 K Overview of impairment K Probabilities of Default considerations K Loss Given Default considerations K Individual estimation of provisions K Collective estimation of provisions K Other aspects related to NPL

impairment measurement

https://bizenius.com/trainings/banking-finance/npl T:+919902200556 E:[email protected]

Managing Non-Performing Loans (NPL) & Debt Recovery Strategies and IFRS9

Your Comprehensive Course Agenda

T: +91 990 220 0556 Email: [email protected]

Would you like to run this course in-house?

customised training solutionsThe in-house training division of BIZENIUS

“This training will help me in handling the current NPL challenges in my bank . Trainer was very knowledgeable , through simple examples help us to deal with the situation in a effective way.”

“I got to learned what I needed which is the strategies and effectiveness of debt collection. After the course, I feel the objective of this training is achieved. Soo is knowledgeable and good ability to deliver the training successfully. I particularly like the topic related to strategies.”

“Case study used in the program was very helpful. It gave us an insight of how to manage NPL and deft recovery.”

Read Some of The Comments Past Delegates Have Made About This Course

“I would recommend all the bankers to go though BIZENIUS NPL program to effectively handle NPL and Debt recovery system.”

Page 4: Managing Non-Performing Loans (NPL) & Debt Recovery ... · K Asset based K Cash balance approach K Trade credit insurance Module 3 : Restructuring & Rephasement of Loans K Prudential

CLIENTS

Registered Office Address:BIZENIUS Business Solutions Private Limited

#102, Rockview, 2nd Cross, 2nd Main, Gottigerre, Bangalore, Karnataka, India - 560 083

https://bizenius.com/trainings/banking-finance/npl T:+919902200556 E:[email protected]